Oil fluctuated in New York amid speculation the Organization of Petroleum Exporting Countries will keep output quotas unchanged even after a slide in prices.
Futures were little changed after dropping as much as 0.8 percent. OPEC, which meets in Vienna tomorrow, said global oil markets remain well-supplied even after its output fell in May for the first time in eight months. A U.S. government report today will show crude stockpiles shrank last week, according to a Bloomberg News survey. The industry-funded American Petroleum Institute yesterday said inventories rose 1.6 million barrels.
Natural gas futures dropped after rising from a six-week low yesterday as a U.S. government report showed gas supplies will increase in 2012 from last year.
Gas dropped as much as 1.3 percent after increasing 0.6 percent yesterday. U.S. marketed production will average 68.47 billion cubic feet a day this year, up 3.4 percent from 2011’s record of 66.22 billion, the Energy Department reported in its Short-Term Energy Outlook. Inventories will reach a record high in October of 4.015 trillion cubic feet, 2 percent below last month’s projection of 4.096 trillion, the agency said.
Naphtha swaps for July fell $10.50, or 1.4 percent, to $739.50 a ton, PVM data showed. Japan naphtha’s premium to London-traded Brent crude futures declined $8.99 to $9.15 a ton.
Gasoil was at $15.63 a barrel more than Dubai crude, a gain of 42 cents, or 2.8 percent, and the highest since June 8, the PVM data showed. Singapore gasoil swaps for July fell 10 cents to $109.95 a barrel.
Jet fuel traded at a premium of 95 cents a barrel to gasoil, up 10 cents from yesterday. This spread, also known as the regrade, is 20 cents higher than a week earlier.
Gold was seen gaining for a fourth day in London as the U.S. dollar weakened, boosting demand for bullion as an alternative investment.
Gold for immediate delivery gained 0.2 percent to $1,613.29 an ounce by 9:26 a.m. in London after falling as much as 0.2 percent earlier today. August-delivery bullion was little changed at $1,614.40 an ounce on the Comex in New York.
Copper gained for the second time in three days on better- than-expected Japan’s machinery orders and after the European Central Bank endorsed a plan to gird the region against debt contagion.
GRAINS, OILSEEDS, SOFT COMMODITIES
Wheat advanced on speculation global production may be smaller than estimated by the U.S. government after Australia, the world’s second-biggest shipper, cut its harvest forecast. Corn declined.
The July delivery contract gained as much as 0.6 percent to $6.195 bushel on the Chicago Board of Trade after losing 2.3 percent yesterday. It traded at $6.1825 at 1:47 p.m. in Singapore. Futures have tumbled 20 percent in the past year as global output recovered from a three-year low in 2010-2011.
December-delivery corn fell as much as 0.2 percent to $5.1825 a bushel before trading at $5.2175. Soybeans for November delivery were little changed at $13.3575 a bushel, after falling as much as 0.4 percent.
Rubber rebounded from the biggest loss in a week on speculation that policy makers will step up measures to combat the debt crisis and as heavy rains in Thailand, the largest producer, cut supplies.
The November-delivery contract rose as much as 1.8 percent to 243.3 yen a kilogram ($3,055 a metric ton), before settling at 242.6 yen on the Tokyo Commodity Exchange. Futures fell as much as 3.7 percent yesterday, the most since June 6.
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